Business Balance Sheet for Small Business Owners

So what is a business balance sheet and
why should you even care about it? Hi, I’m Paul Monax of where I help small business owners just like you understand the money and finances in your business. Today’s topic as a business
balance sheet and no matter how big or small your business is, you as the business
owner need to be reviewing the business balance sheet on a regular
basis. I recommend monthly, at least in the beginning. The balance sheet is one of the Big 3 Financial Statements that tell the business owner how your
business is doing. It tells the financial story of your business. Now unlike the other
two statements the balance sheet is a snapshot in time rather than over
a range or a period. You can create yourself or have your bookkeeper your accountant
create for you but they’re not going to do the analysis for you they’re just going to present you the numbers. You as the business owner need to be
the one responsible for knowing what the numbers mean for your business. Now the
business balance sheet looks something like this. Either side by side or it can also be done top and bottom like this. Either way it’s giving you the same
numbers in the same piece of the story whether it side by side or top to bottom
is just semantics and it doesn’t really matter now on the left side over here this is
the what of your business and on the right side this is the who.
Same over here. Now it’s called the balance sheet because
the total here equals the total on this side over here they’re in balance. The same number on both
sides. It balances left and right or top and bottom. The what these are the
assets in your business. Assets are things like cash, accounts receivable, the
equipment in your business, the inventory in your business. The Who side is split into two halves. The top half is the liabilities. The people you own money to; mortgages, leases, loans fall into that side. Then the bottom part is the owners part. Owners equity. This is your initial
investment into the business And then any additional value that the business
has over time is going to be reflected here. So if your business is worth
more overtime and hopefully it will be then this
number is going to be going up. And that my friends is a business balance sheet
now if you’re looking for more information on matter any other
financial statements for business owners then go to my web site at or click on the link down below in the
description. It’ll take you to the same place. Just enter your email address and i’ll send out a whole package of
examples, templates, and more videos on the financial statements and better
understanding of money and finances in your business Thanks a lot, and have a
prosperous day!

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4 thoughts on “Business Balance Sheet for Small Business Owners

  1. I like your vid very informational 🙂 how long have u been doing this for I'm running a web biz and it has not been a bed of roses if u know wat i mean

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